The social company is the company which accomplishes a profit act while pursuing a social purpose. It is self-evident today that a nation cannot be in charge of the welfare for all society fragility hierarchies under the situation that a global economic crisis comes successively, and yet is not completely solved. One alternative plan which can solve such a welfare blind spot zone is a social company. Therefore we need nomothetic supplement and the law interpretation so that it is activated a social company in a dimension of the company law.
The following suggestion is a legislation in the company law and an interpretation direction for the social company in this article.
At first we have a needing that designed the current commercial law restrictions rule for no voting right or voting right restrictions stocks more flexibly in the case of a social company.
The second, there is the stockholder who thinks this to be contribution when acquire the stocks of the social company. Therefore we may solve this problem as if publishing the various class shares like as zero dividend stocks and dividend stocks. We have to consider whether legislative amendment to the commercial law is needed.
The third, a social company are dissolved, the issue of distribution of the remaining assets occurs. It is difficult to accept so-called Non-Profit Company in the current commercial law. The nomothetic solution that can accept Non-Profit Company is required by the revision of the commercial law.
The fourth, a social company, the company originally thinks of a purpose social than profit characteristics more momentously. Therefore the director in the social company gives priority to the main purpose of the company called the social purpose over profit characteristics and must carry out duties. When a director gives priority to the social purpose that is a company original purpose, and a company suffers damage from the profit-related side; the exercising of the director is not violated of the fiduciary duty(duty of care).
The fifth, when a director damages the company for social purpose accomplishment (social activity), the social company, it is not become a target of the shareholder lawsuit. Because such a social purpose is a purpose prescribing in the articles of association of the company. The court will have to reject the suit when a stockholder states representative suit.
The sixth, there are many problems so that the social company where is in a company form moves into action. At least we will have to put grounds rule for the corporate social responsibility in the commercial law that is the fundamental law of company.